Spot Litecoin ETF Now Proposed by Canary Capital Form S-1 with SEC

Key Points:

• Canary Capital has filed for a spot Litecoin ETF with U.S. regulators, aiming to hold LTC and track the CoinDesk Litecoin Price Index.
• The move marks Canary’s second ETF proposal following a recent XRP fund application.

A relatively new asset management firm, Canary Capital, has filed for a spot Litecoin ETF with the U.S. regulators.

Read more: Litecoin ETF: Potential for a New Boom, Will the SEC Approve Another Crypto ETF? 

Canary Capital Files Spot Litecoin ETF Filing with US Regulators

Per filing documents dated Oct 15, this will be Canary’s second ETF filing, after a recent application for an XRP fund submitted to the Securities and Exchange Commission SEC just about a week ago.

The proposed spot Litecoin ETF would be directly holding Litecoin (LTC) and endeavor to track the performance of CoinDesk Litecoin Price Index (LTX). Upon approval, this ETF would enable investors to expose themselves to LTC without having to hold the cryptocurrency. A few details, like disclosed management fees or the fund ticker, have not been presented in the filings.

The move comes as alternative cryptocurrency ETFs gain popularity, with the United States slowly heading into the 2024 presidential elections. Canary’s spot Litecoin ETF filing forms part of a broader wave of filings from asset management firms looking to tap into the growing interest in digital assets.

There are two filings to be made with regulators as part of launching an exchange-traded product, and Canary has just filed one with the SEC. It submitted a so-called S-1, required for companies issuing new securities.

However, the game-changing legal step was the 19b-4 filing, evidencing a proposed rule change from the relevant stock exchange on which the fund would be listed. While the SEC is compelled to respond to the 19b-4 filing within a certain time frame, it is not obliged to take any action against the original S-1.

How Litecoin’s Longevity Boosts its Appeal Among Investors

Canary Capital referenced the excellent track record of Litecoin in its filing and said the cryptocurrency celebrated its 13th birthday last week on October 13. Litecoin was invented by Charlie Lee and is considered one of the most reliable cryptocurrencies since it is among some of the oldest continuous blockchains with zero downtime.

Other large asset managers have been equally attracted to Litecoin, with Grayscale, CoinShares, and Bitwise having already filed similar investment products in the form of Grayscale Litecoin Trust.